Iberia Reaches Deal to End Strike

Iberia, the Spanish national airline, ended a peak summer season travel strike by its pilots by agreeing to guarantee that the launch of a new, low-cost airline called Catair would not mean job cuts. Representatives from Iberia and its Sepla pilots union met Wednesday to sign a deal to end the strike, which began a few days ago and has reportedly cost the company more than $6.4 million daily. While pilots' jobs are safe, the airline said there were no salary guarantees or pay raises involved in the deal. Iberia had threatened to ask a court to declare the pilots' strike illegal if the two sides could not reach an agreement. That said, there were signs the strike fever was already spreading to other unions after one of four cabin crew unions this week threatened to strike on July 16, 18 and 20, again in protest over the planned budget carrier.

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